An Empirical Analysis of the Relationships among State Transfers, Local Revenues and Expenditures in the Growth of the Italian Government

2000 ◽  
Vol 18 (2) ◽  
pp. 171-185
Author(s):  
Gabriella Legrenzi
Keyword(s):  
Local Governments ◽  
Fiscal Federalism ◽  
Flypaper Effect ◽  
Remarkable Feature ◽  
Expenditure Patterns ◽  
Cointegrating Vector ◽  
Local Expenditure ◽  
High Elasticity ◽  
Disaggregate Data ◽  
Post War

Abstract The analysis of local governments as potential devices to improve the efficiency of public sectors becomes particularly important for Italy, given both the relevant post-war growth of its public sector and the supra-national constraints imposed by the European Monetary Union. The purpose of this paper is to investigate into the relationships between central and local governments’ revenue-expenditure patterns, by considering disaggregate data on Regioni, Province and Comuni. The empirical results exhibit a high elasticity of local expenditure with respect to State transfers, and insignificance of local taxation revenues in determining local expenditure, as a strong version of the so-called flypaper effect. The identification of a second cointegrating vector between State transfers and own resources, with an ambiguous sign, is another remarkable feature of the Italian fiscal federalism, and points to die need for a more efficient monitoring in allocating State transfers.

scholarly journals FLYPAPER EFFECT PADA DANA ALOKASI UMUM ( DAU ) DAN PENDAPATAN ASLI DAERAH ( PAD ) TERHADAP BELANJA DAERAH ( BD ) PADA PEMERINTAH PROVINSI SULAWESI UTARA

2013 ◽  
Vol 2 (1) ◽  
pp. 11
Author(s):  
Adventinus Kristanto Lambut ◽  
Novi Budiarso
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Separation Of Powers ◽  
Capital Expenditure ◽  
Flypaper Effect ◽  
North Sulawesi ◽  
Local Expenditure ◽  
Origin Region ◽  
Original Region ◽  
Operational Expenditure

Decentralization leads the broad impact of accounting for local governments. Among other is the separation of powers from the centre, which has been handed to the local  ( including state, province, county, and town) . Even so, the Central Government does not immediately fully release the local goverments. But the Central Government still needs to transfers  intergovernmental grants to the local. One of the funds transfer is General Allocation Fund which can need by the local government freely for either operational expenditure or capital expenditure. The General Allocation Fund  ( Dana Alokasi Uumum )  and the Original Region Revenue  ( Pendapatan Asli Daerah)  are several income account for local governments to be used as Local Expenditure  ( Belanja Daerah) . One example of the waste in the BD can be seen through a phenomenon called the flypaper effect. Where DAU lag 1 is more significantly influential to BD than PAD lag 1. However, in this research gives empirical evidence that in North Sulawesi Province Government for the realization of the budget for the years 2001 until 2010, the flypaper effect phenomenon does not occur. This demonstrared by statistic tool, multiple regression generates the coefficient PAD lag 1 influences significantly to BD with 0.006 on α 0.05 whereas DAU lag 1 does not influence significant.Keywords: General Allocation Fund, Origin Region Revenue, Local Expenditure, Flypaper Effect.

scholarly journals Leviathan or Public Steward? Evidence on Local Government Taxing Behavior from New York State

2018 ◽  
Vol 49 (4) ◽  
pp. 671-693 ◽  
Author(s):  
Austin M Aldag ◽  
Mildred E Warner ◽  
Yunji Kim
Keyword(s):  
New York ◽  
Local Governments ◽  
Fiscal Federalism ◽  
New York State ◽  
Property Tax ◽  
General Purpose ◽  
Fiscal Stress ◽  
York State ◽  
Expenditure Limitations ◽  
Logistic Regressions

Abstract Fiscal federalism argues local governments compete to provide optimal tax-service bundles as responsible public stewards. In contrast, Leviathan theories argue tax and expenditure limitations (TELs) are necessary to make local governments fiscally responsible. We analyze local taxing behavior in New York State, which implemented a levy limit in 2012 that allows legislative overrides with 60 percent vote of the local governing board. Our 2017 survey of all general-purpose local governments measured fiscal stress, service responses, and local political attitudes and found 38 percent of municipalities voted to override. Logistic regressions show local governments that have more fiscal stress, weaker property tax bases, higher need, and higher employee benefit costs are more likely to override. These findings support fiscal federalism, as local governments that override are pushing back against state policy in order to respond to local needs. TELs introduce unnecessary rigidity and run counter to the precepts of fiscal federalism.

Fantasies of urban futures

2018 ◽  
Author(s):  
James Greenhalgh
Keyword(s):  
Local Governments ◽  
Second World War ◽  
Modern Architecture ◽  
World War ◽  
Urban Futures ◽  
Post War ◽  
Visual Materials ◽  
Urban Fantasy ◽  
The City ◽  
Second World

This chapter examines the origins of the post-war Plans as a means to interrogate a number of historical stereotypes about Britain after the Second World War. In 1945 Hull and Manchester, in common with many other British towns and cities, produced comprehensive, detailed redevelopment plans. These Plans were a spectacular mix of maps, representations of modern architecture and ambitious cityscapes that sit, sometimes uneasily, alongside detailed tables, text and photographs. Initially examining continuities between the inter- and post-war plans, the chapter emphasises the importance of the Plans in local governments’ attempts to express long-held desires to control and shape the city. I argue that the Plans evidence an attempt to mould the future shape and idea of the modern city through imaginative use of urban fantasy. Images of modernism, I argue, were not presented as a realisable architectural aim, but as a way of mediating between the present and an indistinct, but fundamentally better future. I suggest flawed interpretations of the visual materials contained in the Plans are responsible for an over-emphasis on the influence of radical modernism in post-war Britain.

scholarly journals Interrogating the Revenue Allocation in Intergovernmental Relations, Fiscal Federalism and Local Government Finance in Nigeria

2017 ◽  
Vol 6 (2) ◽  
pp. 71
Author(s):  
Bolanle W. Shiyanbade
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Good Governance ◽  
National Income ◽  
Revenue Generation ◽  
Local Council ◽  
Revenue Allocation ◽  
State And Local

This study examined the relationship between fiscal federalism, governance and local government finances in Nigeria, focusing on the administration of local governments and other subsidiary issues on revenue generation in the country. It analysed the legal, institutional and procedural mechanisms for administration, as well as assessed the effect of intergovernmental relations on local government under federal system of governance in the country. This is with a view to providing information on revenue allocation and intergovernmental relations as important elements in understanding and addressing the fiscal federalism on local council finance in Nigeria in the context of their divergent governance experiences since the fourth republic.The paper discovered that beyond the function of revenue generation or allocation, fiscal relations influenced governance positively by creating the expediency of transparency and responsiveness in government as well as a corresponding three levels of government has responsibilities and roles to play in the lives of citizenry in order to bring governance to the grassroots. However, the work found evidences of lack of fiscal autonomy and independent of local government as well as delay in local government election has resulted to poor performance of local administration in Nigeria at large. The results also revealed that a very important factor affecting the local government administration in Nigeria still remains the overbearing contribution of about 93% oil revenue to the national income; a situation that, both state and local governments in Nigeria cannot generate up to twenty five percent (25%) of their expenditure and poor tax culture amongst the citizenry. The study concluded among others that effective human resources, improved strategy, and enhanced capacity building, are critical to improved revenue generation and allocation, which in turn could go a long way to alleviating good governance in Nigeria.

Fiscal Federalism and Local Government Finance in Nigeria: An Examination of Revenue Rights and Fiscal Jurisdiction

2002 ◽  
Vol 68 (4) ◽  
pp. 557-577 ◽  
Author(s):  
S. T. Akindele ◽  
O. R. Olaopa ◽  
A. Sat. Obiyan
Keyword(s):  
Local Government ◽  
Tax Evasion ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Discipline ◽  
Severe Problem ◽  
Fiscal Autonomy ◽  
Local Government Finance ◽  
The People ◽  
The Status

The most severe problem facing public institutions in Nigeria is the fiscal one, particularly in local government. This problem has been provoked by a number of factors, including ‘over dependence’ on statutory allocations from both the state and federal governments, deliberate tax evasion by the local citizenry, creation of nonviable local government areas, differences in the status of local governments in terms of the rural–urban dimension, and inadequate revenue and restricted fiscal jurisdiction. This article examines these factors and their attendant problems, implications and effects within the context of the fiscal federalism established by the 1999 constitution of the Federal Republic of Nigeria. For financially healthy local governments to exist, responsibilities and functions must be allocated in accordance with their taxing power and ability to generate funds internally. The constitutional provision that recognizes local governments’ power in this regard must give them full freedom to operate and this must be well guaranteed and adequately protected. These measures, coupled with a review of the revenue-sharing formula, the granting of fiscal autonomy and fiscal discipline as well as making local government responsive, responsible and accountable to the people will set local governments free from the fiscal stress promoted and strengthened by the 1999 constitution.

Expenditure Reassignment and Fiscal Decentralisation: An Empirical Study of State and Local Government in India

1995 ◽  
Vol 13 (3) ◽  
pp. 351-360 ◽  
Author(s):  
S Nath ◽  
B C Purohit
Keyword(s):  
State Government ◽  
Local Governments ◽  
Conclusive Evidence ◽  
Crucial Issue ◽  
Local Expenditure ◽  
Local Functions ◽  
State And Local Government ◽  
Fiscal Decentralisation ◽  
Total State ◽  
State And Local

Reassignment of local functions to state government and fiscal decentralisation seem to be contradictory. Whether these fiscal strategies are compatible policy packages is an empirical question. The crucial issue is as to how local governments respond to reassignment, a response which may be reflected in their willingness to spend on remaining functions. If reassignment stimulates local expenditure such that the extent of decline in fiscal decentralisation (the local share in total state–local expenditure) is less than the amount warranted, the two fiscal strategies can be taken to be compatible. To test this hypothesis, conditions for compatibility are postulated in terms of tax efforts of state and local governments. With use of Indian fiscal data, state and local tax efforts are computed and compared for selected states, as a first approximation. There is no conclusive evidence to show that reassignment has invariably exerted any dampening impact on local expenditure.

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